Dear CIGAs,
Due to the Republican victory in Massachusetts yesterday, the general commentary on F-TV is that the USA looks really good. The MOPE on Greece is going wild.
The dollar is no safe haven and will not guarantee the maintenance of buying power.
The large purchases by non US entities of US Treasuries in the TIC report smells like Limburger cheese. The US dollar economic recovery is nothing more than pixie dust.
To sustain a US economic recovery, there first needs to be an economic recovery to sustain.
Unemployment now becomes an increasing concern for both parties.
The Fed is locked into QE and in all probability is supporting the US Treasury market via the Caymans and other countries internationally.
Buy the dollar and sell gold? You have to be kidding. That is the madness of the crowd and the actions of the Crimex in paper gold
FHA gets tougher to stay solvent.
The Federal Housing Administration announced stricter lending requirements and higher borrowing fees today, a move meant to shore up the agency’s tanking finances and preclude the need for a taxpayer bailout. The FHA’s reserves to cover losses have fallen to $3.6B, or 0.5% of the $685B in loans outstanding. A year ago, its reserves stood at 3%, and Congress requires the FHA to maintain a 2% capital-reserve ratio.
Unemployment likely to persist.
A new report from a group of U.S. mayors suggests that while unemployment will likely peak in most U.S. cities this year, it will take many years before the jobless rate returns to the lows experienced last decade. In some areas, unemployment will stay at or above 10% through 2013, but "what is just as alarming as the double-digit unemployment in many of the nation’s major metro areas is the lethargic rate at which it will recede once the job market turns around."
Housing market still weak.
NAHB’s Housing Market Index dropped 1 point to 15, still the lowest point since June. Current sales conditions fell 1 point to 15, and buyer traffic fell 1 point to 12. Sales expectations for the next six months remained steady at 26. “We stand poised and ready to deliver new homes as soon as our customers are ready" to take advantage of tax credits and conditions, said NAHB Chairman Joe Robson.
Consumer confidence dips.
ABC’s Consumer Comfort Index slipped 2 points to -49, entering "full retreat" mode this month after posting gains in December. Ratings of the national economy held steady at 9% positive, but those who think it’s a good time to buy things slipped a point to 23%, and those rating their personal finances positively slipped a point to 45%.
Jim Sinclair’s Commentary
Today was the day of insulting emails, and crying readers.
Confidence in our reader’s mindset looks like the photo below.
I must like pain and suffering to do this every day.
Jim Sinclair’s Commentary
In this sea of lies, MOPE and convoluted news the real figures sustain our mindset.
The report should be read.
- Annual PPI Inflation Hits 4.4%
- Housing Starts Keep Bottom-Bouncing
- Strong 4th Quarter GDP Report Would Set Base for Double-Dip Downturn
"No. 273: December PPI, Housing Starts, GDP Outlook "
By subscription: http://www.shadowstats.com/
Jim Sinclair’s Commentary
It will be seen that the feeding frenzy at the bonus begging bowl was the last opportunity to dip at the creative accounting earnings well.
Bank of America sees $194m loss
Wall Street giant Bank of America has reported a net loss of $194m (£120m) in the last three months of 2009.
That compared with a loss of $1.8bn in the same period a year earlier, as the bank said it had taken steps to strengthen its balance sheet.
It added that it had repaid the $45bn government bail-out money it had received during the financial crisis.
For the whole of 2009, the bank made a net profit of $6.3bn, an increase on the $4bn profit it made in 2008.
Earlier this week, fellow US bank JP Morgan Chase reported a profit of $3.3bn, while Citigroup said it made a $7.6bn loss in the final quarter.
"While it’s disappointing to report a loss for the fourth quarter, there were a number of important accomplishments worth noting," said chief executive Brian Moynihan.
Jim Sinclair’s Commentary
All is well for the dollar? Like hell it is!
US housing starts unexpectedly fall in Dec
WASHINGTON, Jan 20 (Reuters) – New U.S. housing starts unexpectedly fell in December, pulled down by a drop in construction activity for single-family dwellings, a government report showed on Wednesday.
The Commerce Department said housing starts fell 4 percent to a seasonally adjusted annual rate of 557,000 units. Analysts polled by Reuters had expected housing starts to rise to 580,000 units. November’s housing starts were revised upwards to 580,000 units from the previously reported 574,000 units. The drop in housing starts was likely the result of unusually cold weather last month.
Groundbreaking activity dropped a record 38.8 percent to an all-time low of 553,000 units for the whole of 2009.
Starts for single-family homes fell 6.9 percent last month to an annual rate of 456,000 units after rising 4.0 percent in November. Groundbreaking for the volatile multifamily segment rose 12.2 percent to a 101,000 unit annual pace, after surging 69.8 percent in November.